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Issue Solved as of latest Spotify Desktop version
If not prompted for update, navigate to top-left corner -> Spotify -> About Spotify -> "There is a new update available"
M1 MacBook Air 2020
macOS Big Sur 11.5.2
My Question or Issue
After hiding / minimizing Spotify using Command+W (on macOS), play/pause functionality with the space bar does not work until clicking on the Spotify UI to fully focus the application. Other Spotify hotkeys such as Command+Left Arrow and Command+Right Arrow still function in this state, but not the space bar for play/pause. A demonstration of the issue can be found below.
Video of the Issue (w/ Audio)
I should note that this was not an issue before. This is a relatively new issue that got so unbearable I had to submit a bug report about it.
Solved! Go to Solution.
This issue has been solved as of the latest version of Spotify.
If not prompted for update, navigate to top-left corner in Apple top bar -> Spotify -> About Spotify -> "There is a new update available".
Thanks to everyone for making this issue known to the developers who ultimately implemented a fix 😀